Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Current Valuation Ratios
Phillips 66, current price multiples
| Phillips 66 | Chevron Corp. | ConocoPhillips | Exxon Mobil Corp. | Occidental Petroleum Corp. | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Current share price (P) | $89.25 | |||||
| No. shares of common stock outstanding | 439,445,842 | |||||
| Growth rate (g) | 9.12% | |||||
| Earnings per share (EPS) | $7.00 | |||||
| Next year expected EPS | $7.64 | |||||
| Operating profit per share | $5.40 | |||||
| Sales per share | $244.16 | |||||
| Book value per share (BVPS) | $56.69 | |||||
| Valuation Ratios (Price Multiples) | ||||||
| Price to earnings (P/E) | 12.75 | 15.24 | 13.02 | 14.71 | 18.98 | |
| Price to next year expected earnings | 11.68 | 14.37 | 12.01 | 13.99 | 16.56 | |
| Price-earnings-growth (PEG) | 1.40 | 2.50 | 1.55 | 2.85 | 1.30 | |
| Price to operating profit (P/OP) | 16.51 | 9.52 | 8.25 | 9.91 | 10.29 | |
| Price to sales (P/S) | 0.37 | 1.39 | 2.20 | 1.46 | 1.69 | |
| Price to book value (P/BV) | 1.57 | 1.77 | 1.86 | 1.88 | 1.32 | |
Based on: 10-K (reporting date: 2019-12-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Phillips 66, historical price multiples
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
- Price to earnings (P/E) ratio
- The P/E ratio experienced significant fluctuations between 2015 and 2019. It started at 9.99 in 2015, peaked sharply at 26.19 in 2016, then dropped substantially to 9.01 in 2017 and further decreased to 7.92 in 2018. In 2019, the ratio increased again to 12.75. This pattern suggests a period of volatility in market expectations for earnings growth or variability in reported earnings during these years.
- Price to operating profit (P/OP) ratio
- The P/OP ratio showed even more pronounced volatility. From 9.54 in 2015, it surged dramatically to 40.09 in 2016, then declined to 26.68 in 2017. This downward trend continued with a steep fall to 8.58 in 2018, followed by an increase to 16.51 in 2019. Such wide fluctuations indicate considerable changes in operating profitability relative to market valuation over the period.
- Price to sales (P/S) ratio
- The P/S ratio remained relatively stable, exhibiting a slight downward trend from 0.43 in 2015 to 0.37 in 2019. The values moved modestly between these points, suggesting steady sales valuation relative to price, with a subtle decline indicating a potential decrease in market valuation per unit of sales over time.
- Price to book value (P/BV) ratio
- The P/BV ratio displayed minor fluctuations, beginning at 1.83 in 2015, maintaining similar levels through 2017, and slightly declining to 1.57 in 2019. This gradual decrease points to a modest reduction in market valuation compared to the book value of assets, possibly reflecting changes in asset quality or investor sentiment toward the company's net asset position.
Price to Earnings (P/E)
Phillips 66, historical P/E calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 439,445,842 | 454,913,087 | 501,237,339 | 517,816,429 | 527,459,894 | |
| Selected Financial Data (US$) | ||||||
| Net income attributable to Phillips 66 (in millions) | 3,076) | 5,595) | 5,106) | 1,555) | 4,227) | |
| Earnings per share (EPS)2 | 7.00 | 12.30 | 10.19 | 3.00 | 8.01 | |
| Share price1, 3 | 89.25 | 97.36 | 91.83 | 78.66 | 80.09 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 12.75 | 7.92 | 9.01 | 26.19 | 9.99 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 Data adjusted for splits and stock dividends.
2 2019 Calculation
EPS = Net income attributable to Phillips 66 ÷ No. shares of common stock outstanding
= 3,076,000,000 ÷ 439,445,842 = 7.00
3 Closing price as at the filing date of Phillips 66 Annual Report.
4 2019 Calculation
P/E ratio = Share price ÷ EPS
= 89.25 ÷ 7.00 = 12.75
5 Click competitor name to see calculations.
The financial data exhibits notable fluctuations in key indicators over the five-year period.
- Share Price
- The share price exhibited a generally upward trajectory from 2015 to 2018, increasing from $80.09 to a peak of $97.36. However, in 2019, the share price experienced a decline to $89.25, reflecting a potential market correction or company-specific challenges impacting investor sentiment.
- Earnings per Share (EPS)
- The EPS displayed significant variability throughout the period. Starting at $8.01 in 2015, EPS sharply declined to $3.00 in 2016, before rebounding strongly to a peak of $12.30 in 2018. In 2019, EPS decreased again to $7.00, indicating volatility in profitability which may be linked to operational or market conditions affecting earnings generation.
- Price-to-Earnings (P/E) Ratio
- The P/E ratio fluctuated considerably, beginning at 9.99 in 2015 and surging to 26.19 in 2016 despite the reduced EPS, suggesting elevated market expectations or a temporary market premium on the stock. Subsequently, the P/E ratio declined notably to 9.01 in 2017 and further to 7.92 in 2018, reflecting improved earnings relative to share price. In 2019, the ratio increased again to 12.75, potentially signaling renewed valuation caution amidst reduced EPS and a declining share price.
Overall, the data reflects a period of earnings volatility accompanied by share price appreciation up to 2018, followed by a contraction in earnings and share price in 2019. The P/E ratio movements suggest variations in market sentiment and valuation relative to earnings over the years analyzed.
Price to Operating Profit (P/OP)
Phillips 66, historical P/OP calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 439,445,842 | 454,913,087 | 501,237,339 | 517,816,429 | 527,459,894 | |
| Selected Financial Data (US$) | ||||||
| Operating income (in millions) | 2,375) | 5,162) | 1,725) | 1,016) | 4,429) | |
| Operating profit per share2 | 5.40 | 11.35 | 3.44 | 1.96 | 8.40 | |
| Share price1, 3 | 89.25 | 97.36 | 91.83 | 78.66 | 80.09 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 16.51 | 8.58 | 26.68 | 40.09 | 9.54 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 Data adjusted for splits and stock dividends.
2 2019 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 2,375,000,000 ÷ 439,445,842 = 5.40
3 Closing price as at the filing date of Phillips 66 Annual Report.
4 2019 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 89.25 ÷ 5.40 = 16.51
5 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited fluctuations over the five-year period. It began at $80.09 at the end of 2015, experienced a slight decline to $78.66 in 2016, followed by a notable increase reaching a peak of $97.36 in 2018. In 2019, the share price decreased to $89.25, indicating some volatility but overall growth compared to the initial value.
- Operating Profit Per Share (OPPS) Trend
- Operating profit per share showed significant variability during the period. It started at $8.40 in 2015, sharply declining to $1.96 in 2016. This was followed by a moderate recovery to $3.44 in 2017, then a considerable surge to $11.35 in 2018. In 2019, OPPS decreased again to $5.40, suggesting fluctuations in operating profitability despite a peak performance in 2018.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio was highly volatile over the period, reflecting the combined movements of share price and operating profit per share. It was relatively low at 9.54 in 2015, dramatically increased to a very high 40.09 in 2016, decreased to 26.68 in 2017, dropped further to 8.58 in 2018, and rose again to 16.51 in 2019. These swings indicate periods where the share price was either overvalued or undervalued relative to operating profit, with the highest ratio corresponding to very low operating profits in 2016.
- Overall Insights
- The data reveals a pattern of volatility in both profitability and market valuation metrics. The sharp drop in operating profit per share in 2016 substantially impacted the P/OP ratio, causing it to spike due to a relatively stable share price. The rebound in 2018's operating profit correlated with a peak share price and a lower P/OP ratio, suggesting improved market confidence aligned with operational performance. The subsequent decline in 2019 indicates a return to more moderate profitability and valuation levels. The financial measures suggest that market valuation was sensitive to changes in operating profitability, with significant fluctuations reflecting underlying business performance dynamics over the reviewed years.
Price to Sales (P/S)
Phillips 66, historical P/S calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 439,445,842 | 454,913,087 | 501,237,339 | 517,816,429 | 527,459,894 | |
| Selected Financial Data (US$) | ||||||
| Sales and other operating revenues (in millions) | 107,293) | 111,461) | 102,354) | 84,279) | 98,975) | |
| Sales per share2 | 244.16 | 245.02 | 204.20 | 162.76 | 187.64 | |
| Share price1, 3 | 89.25 | 97.36 | 91.83 | 78.66 | 80.09 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 0.37 | 0.40 | 0.45 | 0.48 | 0.43 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 Data adjusted for splits and stock dividends.
2 2019 Calculation
Sales per share = Sales and other operating revenues ÷ No. shares of common stock outstanding
= 107,293,000,000 ÷ 439,445,842 = 244.16
3 Closing price as at the filing date of Phillips 66 Annual Report.
4 2019 Calculation
P/S ratio = Share price ÷ Sales per share
= 89.25 ÷ 244.16 = 0.37
5 Click competitor name to see calculations.
- Share Price
- The share price shows a general upward trend from 2015 to 2018, increasing from $80.09 to a peak of $97.36. However, there is a notable decline in 2019, with the share price dropping to $89.25. This suggests a period of growth followed by some loss of investor confidence or market adjustments in the last recorded year.
- Sales per Share
- Sales per share exhibit a strong upward trajectory over the period. Starting at $187.64 in 2015, sales per share decreased slightly in 2016 to $162.76 but then increased significantly in subsequent years, reaching $245.02 in 2018 and maintaining a similar level at $244.16 in 2019. This indicates an overall improvement in revenue generation per unit of equity.
- Price-to-Sales (P/S) Ratio
- The P/S ratio started at 0.43 in 2015, increased slightly to 0.48 in 2016, but then steadily declined each year, reaching 0.37 by 2019. This downward trend in the P/S ratio, despite increasing sales per share, suggests that the market is valuing the company's sales at a lower multiple over time, which could imply a reduction in investor expectations regarding profitability or growth relative to sales.
- Summary of Trends
- The data reveals a company that has improved its sales performance on a per-share basis consistently since 2016, with stable sales levels in the last two years. The share price initially mirrors this positive sales growth but experiences a downturn in the final year analyzed. Meanwhile, the steady decrease in the P/S ratio suggests that market valuation relative to sales is becoming more conservative. This combination of rising sales but declining valuation multiples could be reflective of broader market conditions, sector-specific challenges, or shifts in investor sentiment regarding future prospects.
Price to Book Value (P/BV)
Phillips 66, historical P/BV calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 439,445,842 | 454,913,087 | 501,237,339 | 517,816,429 | 527,459,894 | |
| Selected Financial Data (US$) | ||||||
| Stockholders’ equity (in millions) | 24,910) | 24,653) | 25,085) | 22,390) | 23,100) | |
| Book value per share (BVPS)2 | 56.69 | 54.19 | 50.05 | 43.24 | 43.79 | |
| Share price1, 3 | 89.25 | 97.36 | 91.83 | 78.66 | 80.09 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 1.57 | 1.80 | 1.83 | 1.82 | 1.83 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Chevron Corp. | — | — | — | — | — | |
| ConocoPhillips | — | — | — | — | — | |
| Exxon Mobil Corp. | — | — | — | — | — | |
| Occidental Petroleum Corp. | — | — | — | — | — | |
Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).
1 Data adjusted for splits and stock dividends.
2 2019 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 24,910,000,000 ÷ 439,445,842 = 56.69
3 Closing price as at the filing date of Phillips 66 Annual Report.
4 2019 Calculation
P/BV ratio = Share price ÷ BVPS
= 89.25 ÷ 56.69 = 1.57
5 Click competitor name to see calculations.
The analysis of the provided financial data indicates several noteworthy trends over the five-year period ending December 31, 2019.
- Share Price
- The share price demonstrated an overall upward trend from 2015 to 2018, increasing from $80.09 to $97.36. This represents a positive investor sentiment or market valuation during this period. However, in 2019, the share price decreased to $89.25, indicating a potential market correction or external factors influencing the stock negatively after several years of growth.
- Book Value per Share (BVPS)
- BVPS showed consistent growth throughout the entire timeframe, rising steadily from $43.79 in 2015 to $56.69 in 2019. This suggests that the underlying net asset value of the company increased annually, reflecting possible retention of earnings, asset appreciation, or efficient capital management.
- Price-to-Book Value Ratio (P/BV)
- The P/BV ratio remained relatively stable around 1.8 in the initial four years, reflecting a consistent market valuation relative to book value. However, in 2019, the ratio declined to 1.57, the lowest in the observed period. This decline, in conjunction with the share price decrease and continuous BVPS increase, suggests the market may have discounted the stock, potentially due to perceived risks, earnings outlook, or external economic conditions.
In summary, the company experienced a steady increase in intrinsic value as measured by book value per share, coupled with an initially rising and then declining share price. The reduction in the P/BV ratio in the last year analyzed points toward a shift in investor sentiment or valuation perspective despite improving book value fundamentals.